Rupees in Millions (unless noted)
201620152014201320122011
Balance Sheet
Shareholders' Equity 91,581 82,310 78,621 60,643 48,334 41,903
Non Current Assets 68,064 65,559 58,637 57,593 10,469 9,858
Current Assets 274,255 275,749 313,514 224,356 337,796 252,815
Total Liabilities 250,737 258,997 293,530 221,307 299,931 220,770
Rupees in Millions (unless noted)
201620152014201320122011
Sales Volume (Million Tons) 15.1 13.0 13.2 12.6 12.4 12.9
Profit & Loss Account
Gross Sales Revenue 906,204 1,114,411 1,410,095 1,295,783 1,201,166 975,668
Net Revenue 677,967 913,094 1,187,639 1,100,122 1,024,424 820,530
Gross Profit 22,863 22,921 36,824 34,161 34,323 34,280
Other Income (including share of
associates' profits)
13,411 14,314 20,059 6,510 10,154 6,477
Marketing & Administrative Expenses 10,849 10,672 10,480 10,207 9,871 8,639
Other Expenses 1,986 3,513 3,890 3,664 9,272 2,240
Operating Profit 22,826 22,671 41,972 26,230 24,864 29,361
Finance Cost 7,150 11,017 9,544 7,591 11,659 11,903
Profit before Tax 16,289 12,033 32,969 19,210 13,674 17,974
Profit after Tax 10,273 6,936 21,818 12,638 9,056 14,779
Earning before Interest,
taxes, depreciation & Amortization
(EBITDA)
24,464 24,050 43,567 27,960 26,476 31,016

Comments on Analysis

The Company's after tax profitability has increased by Rs. 3.3 bn in FY 2016 as compared to FY 2015.
This increase was mainly due to the following:
- Decrease in Finance Cost by Rs. 3.9 bn on account of reduction in borrowing rates due to declining
KIBOR and reliance on cheaper FE-25 borrowings.
- Decrease in other expense by Rs. 1.5 bn mainly due to decrease in provision against doubtful trade
debts by Rs. 1.5 bn.
However, the increase in company's profitability was partly offset by the following factors:
- Decrease in other income (including share of profit of associates) by Rs. 0.9 bn mainly due to less
receipt of interest from IPPs.
- Increase in marketing and administrative expenses by Rs. 0.2 bn in line with the inflationary trend.
- Increase in taxation by Rs. 0.9 bn due to increase in profit.

Analysis of variation in Results Reported in Interim Reports

A brief analysis of variations in interim results and the manner in which each individual quarter contributed to the overall annual results is as follows:

  • Qtr 1: The PAT decreased by Rs. 2.0 bn mainly due to nominal after tax inventory loss of Rs. 8.0 mn as compared to after tax inventory gain of Rs. 2.2 bn in 1QFY15. Further, reduction in furnace oil margins due to dip in the oil prices also adversely affected the bottom line. However, this was partly offset by decrease in finance cost.
  • Qtr 2: The PAT increased by Rs. 4.4 bn mainly due to less after tax inventory losses of Rs. 0.6 bn incurred during the quarter as compared to after tax inventory loss of Rs. 4.0 bn during Same Period Last Year (SPLY). eduction in furnace oil margins continued to adversely affect the profitability in the second quarter. However, this was partly setoff with reduction in finance cost and decrease in provision against doubtful debt.
  • Qtr 3: Loss was reported in third quarter mainly due to huge after tax inventory losses amounting to Rs. 4.9 bn as compared to after tax inventory losses of Rs. 3.7 bn during SPLY due to dip in oil prices.
  • Qtr 4: The PAT increased by Rs. 2.0 bn in the fourth quarter mainly due to improvement in white oil and black oil sales volume and receipt of late payment surcharge from IPPs

Summary of Cash Flow Statement with Analysis

Rupees in Millions
201620152014201320122011
Cash Flow Statement
Net cash (outflow) / inflow
from operating activities
(994) (29,574) (62,367) 79,444 (21,327) (8,416)
Net cash inflow / (outflow)
from investing activities
4,098 3,490 4,281 (46,107) 5 (400)
Net cash inflow / (outflow)
from financing activities
6,206 (22,619) 63,682 (11,698) 22,737 (2,306)
Cash & cash equivalents
at end of the year
(30,274) (39,584) 9,119 3,523 (18,116) (19,531)

Comments on Analysis

The variation in cash flows as compared to FY 2015 is because of the following:

Operating Activities

Cash outflow from operating activities has improved mainly due to decrease in stock-in-trade balances by Rs. 7.7 bn owing to reduction in oil prices. Besides, there is a decrease in payments of finance cost, retirement & other service benefit and taxes; all of which have contributed towards improvement of the cash flows from operating activities.

Investing Activities

Cash inflows from investing activities have increased by Rs. 0.6 bn due to less investment in property, plant & equipment. Further, in FY2015, additional investment was made in PRL which is not the case in the current year.

Financing Activities

Cash flows from financing activities show a cash inflow as compared to cash outflow in FY15, mainly due to short-term borrowings obtained during the year which was partly offset with higher cash dividends paid during the year.